This year at ILTACon, we had the chance to attend many sessions with leaders from a wide spectrum of law firms, from small practices to AMLaw 50 firms. Here are our top takeaways.
The AI Hype: From Mania to Maturity
Over the past couple of years, the conversations around AI have been nothing short of manic. There were proclamations that AI would soon be omnipresent, revolutionizing everything in its path. This frenzied atmosphere led many to dive headfirst into AI without a fully formed strategy— “Let’s create an AI budget and see what happens!”
Things have changed. Firms are now more focused on measuring twice and cutting once, ensuring they deploy practical AI solutions that offer real value. Part of this is the result of over-hype: “We were told this would take us to the stars. What we currently have is a prop plane.”
While AI is still seen as a game-changer, the conversation has become more grounded, with a focus on finding the right point solutions that can reliably deliver results. As the G100 leaders so eloquently put it, “We’re not woo-hooing, but we’re not poo-pooing.”
The Big Asterisk with AI: Make the money work
Despite the growing maturity in AI conversations, there's still a big question mark—or perhaps an asterisk—around finding the right business use cases. As one attendee bluntly put it, “I have yet to hear a true case for AI that makes financial sense to me. No one has told me how this fits into the billable hour model.”
This sentiment is not uncommon. Clients often expect AI to reduce their time and costs, yet firms are left grappling with how to recoup those costs. As Nikki Shaver (Legal Tech Hub) put it, “One firm started using AI and their billable hours went down by 8%. We need to have conversations about pricing now.” For some, this means exploring alternative fee arrangements (AFAs) or flat fee payment structures. But for the vast majority, the challenge lies in making AI work within the existing financial framework.
The reality is that the billable hour isn't going anywhere. Industry veterans have heard ‘the billable hour is dead’ refrain for 20+ years and yet we remain in a time-centric world. Few expect that to change anytime soon. The next stage in AI's evolution is finding low-hanging fruit—use cases where AI can meaningfully reduce time spent on non-billable work – while we wait for firm revenue models to evolve, if it ever does.
The ROI on AI: It Takes Some to Get Some.
Part of the maturing conversation around AI is a recognition that there is no magic wand that will instantaneously solve all the problems. You’re only as good as your inputs.
Multiple sessions we attended talked about the importance of structured data and getting information out of silos like email – “Outlook is the bane of our existence.” Even after getting the data, keeping it clean is an important task. As we heard from Ally Drysdale of Finnegan - “’Marie Kondo’ your data. Just because you have it, doesn’t mean to you have to keep it.”
Lastly there’s a push to train AI on the right sources. In a session with Dr. Megan Ma, the conversation revolved around training AI with partners – teaching it to understand why and how someone redlines, for example, then using those models to empower younger associates. AI becomes a tool to unlock the next generation.
Tech Adoption: People, Product, and Process
One thing that hasn't changed is the pace of change among lawyers. Legal tech adoption is still a balancing act that involves people, product, and process.
The "Field of Dreams" approach—"If you build (or buy) it, they will come"—doesn't work within firms. Many experiment with tactics to encourage adoption, from forming beta teams of enthusiastic attorneys (the “Coalition of the Willing” as Barbara Taylor of DLA Piper aptly described it) to straight-up bribes (margaritas, anyone? Thanks Stephanie Goutos for the tip!) .
It’s clear that there’s still a huge opportunity for AI to transform the legal industry. Now, there’s an even greater understanding of what it will take to get there – the right use cases, a measured approach, and humans, not just in the loop, but driving change.
As we comb through our copious notes from ILTACon, we’ll continue to share highlights and takeaways that inspired us. Of course, we’d be remiss not to say that we’re excited about the potential for Billables AI to deliver on all the key themes we’ve heard from ILTACon and beyond. Let’s unleash the power of AI in the ways that matter and reduce non-billable time forever! Sign up below to learn more.
